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German Development Bank KfW To Grant Another US $ 1.1 Billion For Solar Rooftop Programme in India

German development bank KFW could lend India $1.1 billion for rooftop solar projects, on top of another loan it has extended to help the Asian country fund its ambitious green energy plans.

KFW has already offered India a loan of about €1.38 billion ($1.55 billion) to help build a “green corridor” of power lines through nine states, and PM’s visit last month to Germany helped advance talks on the rooftop plans, said Secretary, MNRE.

Source: Live Mint

SNP Insights

The loan from KfW  will encourage the solar rooftop programme of the nation to pick up pace. And considering the capital cost at INR 92,000/ KW for setting up of solar rooftop, this investment can lead to around 760 MW of rooftop capacity addition, which forms only 1.9% of the 40 GW solar rooftop target formulated by MNRE to be achieved by 2022. Thus the impact would be small although important.